Democrats push for tax cuts they once opposed

Democrats seeking a deal to avert the year-end “fiscal cliff” are trying to etch into stone the signature economic achievement of Republican President George W. Bush by permanently extending tax cuts enacted during his tenure.

President Obama has put the extension of the tax cuts for most Americans at the top of his domestic agenda, a remarkable turnaround for Democrats, who had staunchly opposed the tax breaks when they were written into law about a decade ago.

With Obama leaving his Hawaii vacation for Washington on Wednesday and lawmakers returning Thursday, the main dividing line between Republicans and Democrats has come down to whether tax rates should increase for top earners at the end of the year, when the Bush-era tax cuts are set to expire. While Republicans want to extend all the cuts, Democrats are pushing to maintain lower rates on household income below $250,000. Those lower rates significantly reduce the taxes of nearly all American households that earn less than $250,000 — and many who earn more, even if tax rates are allowed to increase on income above that figure.

While it is increasingly unlikely that the two parties will reach an agreement to avoid the fiscal cliff before Jan. 1, it is all but certain that their ultimate deal, whenever it comes, will make permanent the lower rates for most Americans.

R. Glenn Hubbard, dean of the Columbia Business School and an architect of the Bush tax cuts, said it is “deeply ironic” for Democrats to favor extending most of them, given what he called their “visceral” opposition a decade ago. Keeping the lower rates even for income under $250,000 “would enshrine the vast bulk of the Bush tax cuts,” he said.

Democrats say they have reconsidered their opposition to the Bush tax cuts for several reasons. The cuts were written into law from 2001 to 2003 after a decade in which most Americans saw robust income growth. Over the past decade, by contrast, median wages have declined, after adjusting for inflation, amid a weak economy. Allowing tax cuts for the middle class to expire would further reduce take-home pay.

“We’ve had these tax cuts in place since 2001. The world changes, and the economy is where it is,” said Steven Elmendorf, who was chief of staff to former House minority leader Richard A. Gephardt (D-Mo.), a primary opponent of the Bush tax cuts. “With people’s economic status, we should not be raising taxes on people earning under $250,000.”

What’s more, income inequality has been growing. Sparing the middle class higher taxes while requiring the wealthy to pay more would tip the scales slightly in the other direction.

“The reason there’s been this movement toward broad consensus on renewing the tax cut for working- and middle-class families is that will give us a sharper progressivity in the tax system that is very much desired by Democrats and progressives who’ve seen an income distribution more and more distorted toward the wealthy,” said Betsey Stevenson, former chief economist in Obama’s Labor Department and a professor at the University of Michigan, who added that taxes may have to rise even more than currently contemplated to meet the country’s needs.

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Myanmar probes deadly plane crash-landing

HEHO, Myanmar: Myanmar was on Wednesday probing the cause of an air accident that left two people dead and 11 injured when a passenger jet packed with foreign tourists crash-landed and caught fire.

The incident raised fresh questions about the safety standards of Myanmar's fast-growing but overstretched aviation and tourist industries as foreign visitors flock to the country which is emerging from decades of junta rule.

The ageing Fokker 100 jet came down in heavy fog Tuesday in a field short of the runway at Heho airport -- the gateway to the popular tourist destination of Inle Lake -- breaking its tail and catching fire, according to officials.

One Burmese tour guide on board was killed along with a motorcyclist on the ground. The government earlier said an 11-year-old passenger had died but it appeared to be a case of mistaken identity.

The airline said the injured included two Americans who were flown to Bangkok for treatment, as well as two Britons, one Korean man and the two pilots.

"We are still working to find out the cause," Civil Aviation Department deputy director general Win Swe Tun, who is heading the investigation into the crash, told AFP at Heho airport.

He said the plane appeared to have hit a power cable while approaching the runway.

"Seventy of the 71 people on board survived and one died -- it's very rare," he added.

Air Bagan, which described the accident as an "emergency landing", said it had retrieved the plane's black box data recorder.

One eyewitness said flames were already spewing from the plane before it crash-landed.

"We followed the plane as it flew on fire," said 27-year-old villager Phoe La Pyae.

"When we saw the plane, the wing was broken already," he said. "It was so lucky. If the emergency exit had not been opened, no one would have survived".

"We helped to send some seriously injured people to hospital. Their skin was burnt because of fire. Foreigners seemed really scared about what happened," he added.

The body of the aircraft was almost entirely burned while part of a wing was seen lying next to a nearby road, according to an AFP reporter at the scene.

The carrier said 26 passengers were flown to Yangon on a special flight Tuesday and taken to hospital for examination while others would follow.

"Air Bagan deeply regret the deaths of two persons and tender its condolences to the bereaved families," the airline said in an English-language statement posted on its Facebook page.

"Air Bagan in collaboration with the Ministry of Transport is investigating into the cause of the accident. We will take full responsibility for all passengers and will release further information as we received it."

The airline is one of several domestic carriers seeking to profit from a tourist boom in Myanmar as it emerges from decades of military rule.

It is owned by tycoon Tay Za, who is known for his close links to the former junta and has been blacklisted by the US Treasury which once described him as "a notorious regime henchman and arms dealer".

The Fokker 100, which is no longer manufactured, was one of two operated by the airline along with four ATR turboprop aircraft, according to the company's website.

A surge in demand for air travel as Myanmar opens up has stretched the impoverished country's aviation infrastructure, in particular in remote airports.

- AFP/ck

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Home ministry announces Rs 10 lakh ex-gratia for family of dead constable Subhash Tomar

NEW DELHI: The home ministry announced on Wednesday an ex-gratia of Rs 10 lakh to the next of kin of Delhi Police constable Subhash Chand Tomar, who died here on Tuesday morning.

An ex-gratia of Rs 10 lakh will be given to the family of Tomar in addition to the financial and other relief announced by the Delhi Police, a home ministry spokesperson said.

The 47-year-old constable, who was injured during violent protests at India Gate on Sunday, died on Tuesday after battling for life in a city hospital.

Tomar was posted in Karawal Nagar area and was called for maintaining law and order at India Gate area during the weekend protests over the gangrape of a 23-year-old girl.

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Photos: Humboldt Squid Have a Bad Day at the Beach

Photograph by Chris Elmenhurst, Surf the Spot Photography

“Strandings have been taking place with increased frequency along the west coast over the past ten years,” noted NOAA’s Field, “as this population of squid seems to be expanding its range—likely a consequence of climate change—and can be very abundant at times.” (Learn about other jumbo squid strandings.)

Humboldt squid are typically found in warmer waters farther south in theGulf of California (map) and off the coast ofPeru. “[But] we find them up north here during warmer water time periods,” said ocean sciences researcherKenneth Bruland with the University of California, Santa Cruz (UCSC).

Coastal upwelling—when winds blowing south drive ocean circulation to bring cold, nutrient-rich waters up from the deep—ceases during the fall and winter and warmer water is found closer to shore. Bruland noted that climate change, and the resulting areas of low oxygen, “could be a major factor” in drawing jumbo squid north.

Published December 24, 2012

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Christmas Tornadoes Tear Across South

A nasty Christmastime storm system spawned blizzard conditions in some states and at least 15 reported tornadoes in the South, damaging homes, taking out power lines and dangerously snarling holiday travel.

Severe weather swept across the United States during the Christmas holiday, bringing tornadoes and intense thunderstorms to the Gulf Coast, while dumping heavy snow and freezing rain on the Southern Plains.

At least 15 tornadoes were reported today from Texas to Alabama, putting this storm system potentially on track to be one of the largest Christmas day tornado outbreaks on record.

One large tornado was reported in Mobile, Ala., where there are about 19,000 customers without power and 23,429 statewide, according to Alabama Power. Kerry Burns, a Mobile resident originally from Boston, said the storm "sounded like a freight train."

Some buildings in the area, including some churches and a local high school, were reportedly damaged. Ray Uballe, another Mobile resident, said his dad was shaken up.

"He was in his apartment," Uballe said. "He said it sounded like an airplane and then the door flung open and then there was just debris flying."

Douglas Mark Nix, president of the Infirmary Health System, said one of their Mobile hospitals lost power and sustained damage. There were no early reports of injuries to staff or patients.

"We are operating now on generator power," he said. "We do not have substantial damage but we do have a number of windows out and we have some ceiling tiles down, throughout the facility at the main hospital.

"We can run for at least two weeks but I saw power crews out all over the city so I fully expect power to be restored within the next day or so," Nix added.

Melinda Martinez/The Daily Town Talk/AP Photo

Winter Weather Causes Holiday Travel Problems Watch Video

At least eight states were issued blizzard warnings today, as the storms made highways dangerously slick heading into one of the busiest travel days of the year.

Oklahoma got about 7 inches of snow all over the state making for treacherous road conditions. ABC News affiliate KOCO-TV in Oklahoma City said the weather was being blamed for a 21-vehicle wreck on Interstate 40, but no one was seriously injured.

Ice accumulation in Arkansas bent trees and power lines, leaving at least 50,000 customers across the state without power. About 10 inches of snow fell on Fayetteville, Ark.

The storms, which first wreaked havoc on the West Coast before moving east, are being blamed for at least one death in Texas.

Investigators in the Houston area told ABC state KTRK-TV in Houston that a young man was trying to move a downed tree that was blocking the roadway when another one snapped and fell on top of him. He was later pronounced dead at a hopsital.

The last time a number of tornadoes hit the Gulf Coast area around Christmas Day was in 2009, when 22 tornadoes struck on Christmas Eve morning, National Weather Service spokesman Chris Vaccaro told ABC News over email.

The deadliest Christmastime tornado outbreak on record was Dec. 24 to 26, 1982, when 29 tornadoes in Oklahoma, Missouri, Arkansas, Tennessee and Mississippi killed three people and injured 32.

The last killer tornado around Christmas, Vaccaro said, was a Christmas Eve EF4 in Tennessee in 1988, which killed one person and injured seven. EF4 tornadoes can produce winds up to 200 mph.

No official word yet on the strength of the string of tornadoes reported today.

While some were preparing for a Christmas feast, others were hunkered down.

More than 180 flights nationwide were canceled by midday, according to the flight tracker FlightAware.com. More than half were canceled by American Airlines and its regional affiliate, American Eagle.

The storm system is expected to continue east into Georgia and the Carolinas Wednesday and could potentially spawn more tornadoes, according to the National Weather Service.

ABC News' Matt Gutman, Max Golembo and ABC News Radio contributed to this report.

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Federal workers feel unease over potential layoffs, furloughs unleashed by ‘fiscal cliff’

Federal employees have been skeptical for months that the biggest cuts to government spending in history could really happen. But with the “fiscal cliff” a week away, workers are now growing increasingly alarmed that their jobs and their missions could be on the line.

President Obama and members of Congress headed out of town late last week for a Christmas break without reaching a deal to avoid $110 billion in automatic across-the-board spending cuts, which would hamstring operations ranging from weather forecasting and air traffic control to the purchase of spare parts for weapons systems. So civil servants are bracing for the blow, wondering whether their work will be upended — and whether they may be forced to take unpaid days off.

“This could change day by day,” said Antonio Webb, 25, who works in the mail service that handles correspondence for the Department of Homeland Security. “You could come into work and the next day they say, ‘We don’t need you because we have to cut so much.’ ”

Many federal workers have become jaded after a two-year pay freeze and congressional fights over spending that keep agencies lurching from one stopgap budget to another. Until recently, few employees thought it could come to this: Budget cuts of 8 to 10 percent divided equally between military and domestic agencies. Only a few programs, like Social Security, veterans benefits and some services for the poor, are exempted.

“Sure, we continue to do our jobs,” said Carl Eichenwald, who works in enforcement at the Environmental Protection Agency. “But all of this uncertainty is disruptive for our mission. A lot of time gets spent spinning wheels. We won’t know whether we can do inspections. Do we have 100 percent of our budget, or 85 percent?”

Top congressional aides said Monday that discussions of how to avert the fiscal cliff had come to a virtual standstill. Obama and House Speaker John A. Boehner (R-Ohio) had not spoken since Friday.

Each side in the negotiations urged the other to come up with a way around the impasse. A senior Democratic aide said Boehner needs to return from the holiday with a “cleared head and a readiness to deal.” The aide said that there is no time for Democrats to unilaterally advance a bill in the Senate, adding that they can press forward with legislation only if they are assured by Republican leaders of GOP support.

A senior Senate Republican aide insisted, however, that it is now up to Senate Majority Leader Harry M. Reid (Nev.) and his fellow Democrats to figure out what they can pass in the Senate without worrying about the Republican-controlled House.

As the year-end deadline approaches, federal employees have been told very little by their bosses about how their agencies are preparing to carry out huge spending reductions.

“It seemed like we were almost immune to thinking that something real was going to come of it,” said Fernando Cutz, an analyst for the U.S. Agency for International Development.

Then came an e-mailed memo on Thursday from agency heads to employees. The cuts would be “significant and harmful to our collective mission.” Furloughs “or other personnel actions” — layoffs — remain a real possibility.

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Four jawans killed in shooting at Chhattisgarh CRPF camp

RAIPUR: Four CRPF jawans were killed and one was injured after their colleague opened fire at them in Chhattisgarh's Dantewada district.

The shooting occurred on Monday night at the camp of 111 CRPF Battalion when a jawan Deep Kumar Tiwari opened fire on the jawans who were sleeping, Dantewada SP Narendra Khare told .

While three jawans died on the spot, one died while being taken to hospital, Khare said, adding that the injured has been referred to a Jagdalpur hospital.

While the exact cause is being ascertained Khare said the accused was suffering from some "psychological problems".

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Photos: Humboldt Squid Have a Bad Day at the Beach

Photograph by Chris Elmenhurst, Surf the Spot Photography

“Strandings have been taking place with increased frequency along the west coast over the past ten years,” noted NOAA’s Field, “as this population of squid seems to be expanding its range—likely a consequence of climate change—and can be very abundant at times.” (Learn about other jumbo squid strandings.)

Humboldt squid are typically found in warmer waters farther south in theGulf of California (map) and off the coast ofPeru. “[But] we find them up north here during warmer water time periods,” said ocean sciences researcherKenneth Bruland with the University of California, Santa Cruz (UCSC).

Coastal upwelling—when winds blowing south drive ocean circulation to bring cold, nutrient-rich waters up from the deep—ceases during the fall and winter and warmer water is found closer to shore. Bruland noted that climate change, and the resulting areas of low oxygen, “could be a major factor” in drawing jumbo squid north.

Published December 24, 2012

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Newtown Christmas: 'We Know They'll Feel Loved'

People drawn to Newtown to share in its mourning brought cards and handmade snowflakes to town Monday while residents prepared to observe Christmas less than two weeks after a gunman killed 20 children and six educators at an elementary school.

On Christmas Eve, residents said they would light luminaries outside their homes in memory of the victims. Tiny empty Christmas stockings with the victims' names on them hung from trees in the neighborhood where the children were shot.

"We know that they'll feel loved. They'll feel that somebody actually cares," said Treyvon Smalls, a 15-year-old from a few towns away who arrived at town hall with hundreds of cards and paper snowflakes collected from around the state.

Organizers said they wanted to let the families of victims know they are not alone while also giving Connecticut children a chance to express their feelings about the shootings at Sandy Hook Elementary School.

At the Trinity Episcopal Church, less than 2 miles from the school, an overflow crowd of several hundred people attended Christmas Eve services. They were greeted by the sounds of a children's choir echoing throughout a sanctuary hall that had its walls decorated with green wreaths adorned with red bows.

The church program said flowers were donated in honor of Sandy Hook shooting victims, identified by name or as the "school angels" and "Sandy Hook families."

Julio Cortez, File/AP Photo

U.S. Sends Christmas Wishes to Newtown, Conn. Watch Video

Season of Giving: Newtown Tragedy Inspires Country to Spread Kindness Watch Video

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The service, which generally took on a celebratory tone, made only a few vague references to the shooting. Pastor Kathie Adams-Shepherd led the congregation in praying "that the joy and consolation of the wonderful counselor might enliven all who are touched by illness, danger, or grief, especially all those families affected by the shootings in Sandy Hook."

Police say the gunman killed his mother in her bed before his Dec. 14 rampage and committed suicide as he heard officers arriving. Authorities have yet to give a theory about his motive.

While the grief is still fresh, some residents are urging political activism in the wake of the tragedy. A grassroots group called Newtown United has been meeting at the library to talk about issues ranging from gun control, to increasing mental health services to the types of memorials that could be erected for the victims. Some clergy members have said they also intend to push for change.

"We seek not to be the town of tragedy," said Rabbi Shaul Praver of Congregation Adath Israel. "But, we seek to be the town where all the great changes started."

Since the shooting, messages similar to the ones delivered Monday have arrived from around the world. People have donated toys, books, money and more. A United Way fund, one of many, has collected $3 million. People have given nearly $500,000 to a memorial scholarship fund at the University of Connecticut. On Christmas Day, police from other towns have agreed to work so Newtown officers can have the time off.

In the center of Newtown's Sandy Hook section Monday, a steady stream of residents and out-of-towners snapped pictures, lit candles and dropped off children's gifts at an expansive memorial filled with stuffed animals, poems, flowers, posters and cards.

"All the families who lost those little kids, Christmas will never be the same," said Philippe Poncet, a Newtown resident originally from France. "Everybody across the world is trying to share the tragedy with our community here."

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Obama attends Inouye memorial in Hawaii

HONOLULU —
President Obama came to a veterans cemetery here on Sunday to honor the late Sen. Daniel K. Inouye, less as the nation’s top politician and more as a native son of Hawaii paying tribute to his roots.

The president had already formally memorialized Inouye (D-Hawaii), who died last week at age 88 after 50 years in the Senate, on Friday at the National Cathedral in Washington.

But on Sunday, sitting between first lady Michelle Obama and Inouye’s wife, Irene, Obama did not speak. He had no formal role at the ceremony at the National Memorial Cemetery of the Pacific — nicknamed “Punchbowl” for the terrestrial imprint left by volcanic eruptions thousands of years ago.

Yet the moment at the cemetery had enormous emotional resonance for the president, who spent many formative years living with his grandparents in Hawaii. In the space of 90 minutes, he would attend the memorial service of a man who from afar had shaped his political thinking and remember another man who directly shaped his life choices.

Moments after the ceremony honoring Inouye ended, Obama traveled a half-mile southeast within the same cemetery, to Site 44, Row 400, of Columbarium No. 1 — the grave site of his maternal grandfather, Stanley A. Dunham.

Like Inouye, Dunham was a World War II veteran. Obama has said that Dunham and his wife, Madelyn, taught him the “idea of America.” He has recounted how his grandfather, “Gramps,” gave him dog tags “from his time in Patton’s Army,” and the future president came to understand that “his defense of this country marked one of his greatest sources of pride.”

Dunham died 20 years ago. The ashes of his wife and daughter, Stanley Anne, Obama’s mother, were scattered over the Pacific Ocean in Hawaii.

And while Obama has said that his grandparents influenced how he lived his life, Inouye had a profound effect on his politics. Last week, Obama said Inouye was “perhaps my earliest political inspiration.”

As part of the Japanese American 442nd Regimental Combat Team in World War II, Inouye lost his right arm protecting his unit from a grenade. In the memorial last week, Obama said he remembered watching Inouye ask questions during the Watergate hearings in the 1970s.

“The person who fascinated me most was this man of Japanese descent with one arm, speaking in this courtly baritone, full of dignity and grace,” Obama said. “This was a man who, as a teenager, stepped up to serve his country even after his fellow Japanese Americans were declared enemy aliens; a man who believed in America even when its government didn’t necessarily believe in him. That meant something to me. It gave me a powerful sense — one that I couldn’t put into words — a powerful sense of hope.”

On Sunday, surviving members of the 442nd Regiment and their families surrounded the ceremony. The formal eulogies were left to Inouye’s colleagues and staffers.

Senate Majority Leader Harry M. Reid (D-Nev.) said Inouye would only talk about the war in private, never in public. Reid had had an hour-long conversation with him just before Inouye, who was experiencing respiratory problems, went to the hospital, a little more than a week before he died.

“We talked as though there would be many tomorrows, but there wouldn’t be any,” Reid said.

In remarks by Reid and others, it was hard not to miss the nostalgia for an era of bipartisanship that Inouye reflected and one that seems to be disappearing with his generation.

Reid recalled how he had received a call last week from former Senate majority leader Bob Dole (R-Kan.), expressing his desire to pay his respects to Inouye in the Capitol Rotunda. Dole, who normally uses a wheelchair, insisted on walking and viewing Inouye’s casket directly.

“As a result of that war, both had lost the use of their right arms,” Reid recalled, and could work together despite their political differences.

Inouye “was a Democrat who would never hesitate to cooperate with a Republican for the good of the country,” Reid said. “Danny was the best senator among us all,” he said.

Inouye’s family has not decided on an exact burial spot. One option is Section D, near the center of the cemetery, where many of his comrades from the 442nd Combat Team are buried. His first wife, Margaret Shinobu Awamura, who died in 1996, is also buried there.

Near the end of the ceremony, Sen. Daniel K. Akaka (D-Hawaii) said he was saying goodbye to a brother who had paved the way for future generations.

“He made it possible for minorities like me, and later on, President Obama, to serve at the highest levels,” he said.

Then Inouye received full military honors — including a four-jet flyover — and a military officer delivered folded American flags that had been draped over Inouye’s casket to his wife and son Ken.

As the officer presented the flags, Obama remained attentive and silent.

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